CARRIER GLOBAL CORP (CARR) Stock Fundamental Analysis
USA - NYSE:CARR - US14448C1045 - Common Stock
52.01 USD
-1.12 (-2.11%)
52.3299 USD
+0.32 (+0.62%)
Taking everything into account, CARR scores 4 out of 10 in our fundamental rating. CARR was compared to 41 industry peers in the Building Products industry. While CARR is still in line with the averages on profitability rating, there are concerns on its financial health. CARR is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CARR was profitable.
In the past year CARR had a positive cash flow from operations.
CARR had positive earnings in each of the past 5 years.
CARR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 10.46%, CARR is in the better half of the industry, outperforming 70.73% of the companies in the same industry.
CARR's Return On Equity of 27.45% is amongst the best of the industry. CARR outperforms 82.93% of its industry peers.
With a Return On Invested Capital value of 5.09%, CARR is not doing good in the industry: 73.17% of the companies in the same industry are doing better.
CARR had an Average Return On Invested Capital over the past 3 years of 8.06%. This is below the industry average of 12.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROIC | 5.09% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
1.3 Margins
CARR has a better Profit Margin (18.05%) than 92.68% of its industry peers.
In the last couple of years the Profit Margin of CARR has grown nicely.
CARR has a Operating Margin of 11.00%. This is comparable to the rest of the industry: CARR outperforms 46.34% of its industry peers.
In the last couple of years the Operating Margin of CARR has declined.
Looking at the Gross Margin, with a value of 27.36%, CARR is in line with its industry, outperforming 41.46% of the companies in the same industry.
CARR's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% |
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
CARR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for CARR has been increased compared to 1 year ago.
Compared to 5 years ago, CARR has more shares outstanding
Compared to 1 year ago, CARR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.41 indicates that CARR is not a great score, but indicates only limited risk for bankruptcy at the moment.
CARR has a Altman-Z score of 2.41. This is in the lower half of the industry: CARR underperforms 70.73% of its industry peers.
CARR has a debt to FCF ratio of 8.45. This is a slightly negative value and a sign of low solvency as CARR would need 8.45 years to pay back of all of its debts.
CARR's Debt to FCF ratio of 8.45 is on the low side compared to the rest of the industry. CARR is outperformed by 63.41% of its industry peers.
A Debt/Equity ratio of 0.78 indicates that CARR is somewhat dependend on debt financing.
CARR's Debt to Equity ratio of 0.78 is on the low side compared to the rest of the industry. CARR is outperformed by 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.61
WACC8.32%
2.3 Liquidity
A Current Ratio of 1.14 indicates that CARR should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.14, CARR is doing worse than 87.80% of the companies in the same industry.
A Quick Ratio of 0.75 indicates that CARR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.75, CARR is doing worse than 85.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
CARR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.36%.
The Earnings Per Share has been growing by 20.27% on average over the past years. This is a very strong growth
CARR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -22.93%.
The Revenue has been growing slightly by 3.86% on average over the past years.
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
3.2 Future
The Earnings Per Share is expected to grow by 11.59% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y-2.27%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
EPS Next 5Y11.59%
Revenue Next Year-3.39%
Revenue Next 2Y0.25%
Revenue Next 3Y1.95%
Revenue Next 5Y5%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.71 indicates a rather expensive valuation of CARR.
CARR's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.51, CARR is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 16.82, the valuation of CARR can be described as correct.
CARR's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CARR to the average of the S&P500 Index (34.98), we can say CARR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 16.82 |
4.2 Price Multiples
60.98% of the companies in the same industry are cheaper than CARR, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CARR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.37 | ||
| EV/EBITDA | 14.84 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.92
EPS Next 2Y5.08%
EPS Next 3Y7.79%
5. Dividend
5.1 Amount
CARR has a Yearly Dividend Yield of 1.63%.
In the last 3 months the price of CARR has falen by -23.23%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CARR's Dividend Yield is rather good when compared to the industry average which is at 1.34. CARR pays more dividend than 85.37% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.44, CARR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
5.2 History
CARR has been paying a dividend for over 5 years, so it has already some track record.
CARR has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
18.56% of the earnings are spent on dividend by CARR. This is a low number and sustainable payout ratio.
DP18.56%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
52.01
-1.12 (-2.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryBuilding Products
Earnings (Last)
Earnings (Next)
Inst Owners86.61%
Inst Owner Change-0.75%
Ins Owners6.03%
Ins Owner Change1.39%
Market Cap44.26B
Revenue(TTM)22.06B
Net Income(TTM)3.98B
Analysts76.88
Price Target76.54 (47.16%)
Short Float %1.41%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP18.56%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.53%
Min EPS beat(2)-0.24%
Max EPS beat(2)15.31%
EPS beat(4)3
Avg EPS beat(4)7.55%
Min EPS beat(4)-0.24%
Max EPS beat(4)15.31%
EPS beat(8)6
Avg EPS beat(8)5.54%
EPS beat(12)9
Avg EPS beat(12)4.93%
EPS beat(16)13
Avg EPS beat(16)6.21%
Revenue beat(2)0
Avg Revenue beat(2)-1.75%
Min Revenue beat(2)-1.83%
Max Revenue beat(2)-1.67%
Revenue beat(4)0
Avg Revenue beat(4)-2.28%
Min Revenue beat(4)-4.33%
Max Revenue beat(4)-1.31%
Revenue beat(8)0
Avg Revenue beat(8)-4%
Revenue beat(12)2
Avg Revenue beat(12)-2.9%
Revenue beat(16)4
Avg Revenue beat(16)-2.03%
PT rev (1m)-4.2%
PT rev (3m)-10.48%
EPS NQ rev (1m)-24.81%
EPS NQ rev (3m)-35.67%
EPS NY rev (1m)-7.14%
EPS NY rev (3m)-11.88%
Revenue NQ rev (1m)-4.3%
Revenue NQ rev (3m)-8.47%
Revenue NY rev (1m)-1.77%
Revenue NY rev (3m)-3.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 16.82 | ||
| P/S | 2.01 | ||
| P/FCF | 31.37 | ||
| P/OCF | 23.43 | ||
| P/B | 3.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.84 |
EPS(TTM)2.78
EY5.35%
EPS(NY)3.09
Fwd EY5.94%
FCF(TTM)1.66
FCFY3.19%
OCF(TTM)2.22
OCFY4.27%
SpS25.92
BVpS17.05
TBVpS-9.08
PEG (NY)N/A
PEG (5Y)0.92
Graham Number32.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.46% | ||
| ROE | 27.45% | ||
| ROCE | 8% | ||
| ROIC | 5.09% | ||
| ROICexc | 5.34% | ||
| ROICexgc | 23.15% | ||
| OM | 11% | ||
| PM (TTM) | 18.05% | ||
| GM | 27.36% | ||
| FCFM | 6.4% |
ROA(3y)10.88%
ROA(5y)9.38%
ROE(3y)33.63%
ROE(5y)31.44%
ROIC(3y)8.06%
ROIC(5y)7.66%
ROICexc(3y)10.45%
ROICexc(5y)9.61%
ROICexgc(3y)34.91%
ROICexgc(5y)29.9%
ROCE(3y)12.67%
ROCE(5y)12.04%
ROICexgc growth 3Y11.52%
ROICexgc growth 5Y4.64%
ROICexc growth 3Y-15.42%
ROICexc growth 5Y-8.97%
OM growth 3Y-5.06%
OM growth 5Y-4.9%
PM growth 3Y45.61%
PM growth 5Y16.99%
GM growth 3Y-2.78%
GM growth 5Y-1.79%
F-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 8.45 | ||
| Debt/EBITDA | 3.07 | ||
| Cap/Depr | 37.85% | ||
| Cap/Sales | 2.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 51.21% | ||
| Profit Quality | 35.43% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.41 |
F-Score5
WACC8.32%
ROIC/WACC0.61
Cap/Depr(3y)74.81%
Cap/Depr(5y)83.81%
Cap/Sales(3y)2.12%
Cap/Sales(5y)1.96%
Profit Quality(3y)66.45%
Profit Quality(5y)76.55%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.36%
EPS 3Y7.25%
EPS 5Y20.27%
EPS Q2Q%-12.99%
EPS Next Y-2.27%
EPS Next 2Y5.08%
EPS Next 3Y7.79%
EPS Next 5Y11.59%
Revenue 1Y (TTM)-22.93%
Revenue growth 3Y2.94%
Revenue growth 5Y3.86%
Sales Q2Q%-6.77%
Revenue Next Year-3.39%
Revenue Next 2Y0.25%
Revenue Next 3Y1.95%
Revenue Next 5Y5%
EBIT growth 1Y-5.35%
EBIT growth 3Y-2.27%
EBIT growth 5Y-1.23%
EBIT Next Year27.31%
EBIT Next 3Y12.77%
EBIT Next 5Y8.53%
FCF growth 1Y-38.44%
FCF growth 3Y-42.28%
FCF growth 5Y-27.03%
OCF growth 1Y-29.2%
OCF growth 3Y-26.64%
OCF growth 5Y-15.1%
CARRIER GLOBAL CORP / CARR FAQ
Can you provide the ChartMill fundamental rating for CARRIER GLOBAL CORP?
ChartMill assigns a fundamental rating of 4 / 10 to CARR.
What is the valuation status of CARRIER GLOBAL CORP (CARR) stock?
ChartMill assigns a valuation rating of 3 / 10 to CARRIER GLOBAL CORP (CARR). This can be considered as Overvalued.
How profitable is CARRIER GLOBAL CORP (CARR) stock?
CARRIER GLOBAL CORP (CARR) has a profitability rating of 5 / 10.
What is the valuation of CARRIER GLOBAL CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CARRIER GLOBAL CORP (CARR) is 18.71 and the Price/Book (PB) ratio is 3.05.
Can you provide the expected EPS growth for CARR stock?
The Earnings per Share (EPS) of CARRIER GLOBAL CORP (CARR) is expected to decline by -2.27% in the next year.